Should FG suspend bailouts to states owing salaries?

In the first instance, what brought about the term, bailout, and how did it find its way into our national economic lexicon? What or who prompted it? What made the issuing authority, albeit, the Federal Government, to accede to this request? Are there clearly spelt out precautionary measures to the receiving states?

With all these questions, if any state is found wanting, then the big stick should be wielded. This is because many Nigerians, who had thought the bailouts would bring succor to workers being owed huge debts in several states, have been left reeling in pains.

This has led to hues and cries among workers in many states of the federation, who have been left in the lurch because the bailouts meant to bail them out of their economy logjam were diverted. Most states have, since the introduction of the bailouts, been accused by their workers of having another window of opportunity to steal from the funds made available under this scheme.

In a nutshell, since the bailout is not a bazaar or free money, any state caught in the cobweb of misapplying it in whatever form should be sanctioned.

Part of the sanction should include, among other sanctions, an outright seizure of the amount due to the state. The President Muhammadu Buhari-led administration should caution some of those governors, especially those in the APC-controlled states who have resorted to impunity in governing their states. Enough of this romance between the Federal Government and some of these states; this is casting pall on the on the anti-corruption stance of the government. So, President Buhari must be decisive on all fronts. •Kayode Oladeji (Media consultant)

I think the bailout issue was a welcome development and the money was meant to augment whatsoever deficit that the affected state governments owe. As a matter of fact, some state governors diverted the money to some other things and the aim of augmenting the deficit has long been defeated.

I would suggest that rather than suspend disbursements, a mechanism should be set up to monitor those states that owe and refuse to pay salaries. There should be a structure to monitor them so that the guidelines stipulated as preconditions for the bailout would be met.

Suspending it is not going to help those that are owed and it will not speak well of the Federal Government since the government had these people in mind when it come up with the idea of the bailout.

It is a pity that these governors still owe workers’ salaries, pensions and gratuities to those that have retired after collecting bailouts. • Dr Nse Akwang (Department of Library, Akwa Ibom State University)

As a deterrent to uncharitable behaviour by some state governments which have exhibited a penchant for diverting bailouts to other uses, the Federal Government should suspend the grant of such privileges to them until the desired compliance level is achieved.

The saga of the diverted bailouts has been unfortunate. The gesture by the Federal Government was primarily meant to be charitable rescue interventions to assist selected state governments defray the backlog of wage bills. At some point, the wage bill piled-up in 27 out of the 36 states of the federation.

For one thing, employee compensation and reward system has historically constituted a significant part and parcel of the primary drivers and catalysts for employment relations in the world of work.

Therefore, employers of human capital that willfully undermine the compensation and reward function often do this at their own peril, as well as invite labour mistrust and disaffection. Thus, this logic of managerial reasoning obviates any further explanation about the organisational essence of salient and competitive wages for the motivation and sustenance of acceptable workplace behaviour by employees.

Therefore, if bailouts received by the affected state governments were meant for the payment of outstanding wage bills, the breach of that expectation and trust by the errant state governments should attract appropriate and legitimate sanctions from the Federal Government, perhaps through the Central Bank of Nigeria which should have audited and verified the purported state-level processes of paying up wage bill backlogs with the bailouts. • Professor Olusegun Matanmi, (Professor of Human Resources & Industrial Relations, Faculty of Management Sciences, Lagos State University, Ojo-Lagos)

The Federal Government’s bailout to states is a welcome development which must be encouraged until we find a lasting strategic solution to this current recession. But there must be genuine commitments on the part of the state governors to use it wisely for the main objective. When a purpose is not well defined, abuse is inevitable. The state governors must be creative and think outside the box by looking for alternative measures to generate revenue internally. However, the affected states cannot continue to rely on the bailout. If they do, they are only postponing the evil days which must surely come.

But it is pertinent to note that the sincerity of purpose of some governors are in doubt. They lack vision and ideals that are highly needed at this point in time in our nation’s economic history. If states are given bailouts and yet, they still owe workers’ salaries, then what happened? That is the fundamental challenge.

In a state like Edo, we are well informed of the success story of the incumbent governor. Salaries are paid as and when due. Those affected were the local government workers that were owed several months; but they had been attended to. That is the sincerity of purpose that I’m talking about. What about Lagos State? It is the same success story like that of Edo. We want other state governors to take a cue from the success stories in the aforementioned states.

The Federal Government should mandate the anti-graft agencies, like the Economic and Financial Crimes Commission and the Independent Corrupt Practices and other related 0ffences Commission, to monitor the governors in ensuring that they use the funds for the purposes for which they were originally meant for. The payment of salaries is the main reason for the bailouts and the funds should not be diverted to other areas.

I think the bailout is a blessing in disguise at this point in time. But the politicians with questionable character and antecedents want to make it a curse. We must not allow that to happen. The welfare of the people is fundamental and must not be taken for granted by some politicians who lack vision, direction and ideas to lead at this point in time. •Theophilus Ibodeme (An activist)

The Federal Government should not just stop the bailouts to such states; it should probe the application of these funds by state governors. The Federal Government must caution received these governors. It should tell them that they will face trial after their tenures for misappropriating these funds. Most of the governors stole a substantial part of these funds and put it in their personal businesses. There is a state governor, whom I will not like to mention, that collected N25bn, put down N16bn and said the state was owing him. How can? Any governor that collected this bailout and is not paying salaries is a thief; he should be investigated and put on trial after his tenure. • Senator Emmanuel Anosike (A former federal lawmaker)

I am against new bailouts for governors owing workers’ salaries. The Federal Government deserves commendation for conceiving the idea and sustaining it, but it is unfortunate that states have bastardised the efforts by short-changing workers. The essence of the bailouts to states was to cushion effect of the economic recession. This was supposed to alleviate the suffering of the workers and the masses; unfortunately it has added another problem to their case. Most of the governors have diverted the money for projects which don’t have meaningful impact. I am of strong view that the Federal Government should stop giving out any money to such states. The Federal Government should probe and prosecute the commissioners for Finance and the Accountant Generals of the affected states. These governors should not be allowed to take money from any financial institution. The National Assembly should also pass the anti-corruption bill sent by the executive into law. Tunji Ogunlola, (Ekiti State Chairman of the Conference of Nigerian Political Parties)

Copyright PUNCH. All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express written permission from PUNCH.